Compal to acquire Toshiba's European LCD TV factory
CNATAIPEI--Taiwan's Compal Electronics Inc., the world's No. 2 contract notebook maker, announced Monday that it willacquire Toshiba Corp.'s LCD TV manufacturing factory located in Wroclaw, Poland.
October 29, 2013, 12:22 am TWN
The deal to acquire 100 percent ownership of Toshiba Television Central Europe will cost Compal NT$734.6 million (US$25 million) and is expected to be completed in the first quarter of 2014, Compal saidin a filing to the Taiwan Stock Exchange.
“Toshiba is one of Compal's major customers in the LCD TV business. This deal will undoubtedly further strengthen the relationship between Compal and Toshiba,” Compal spokesman Gary Lu said in a statement on its website.
“After the completion of the deal, Toshiba will continue to supply the European market with LCD TVs manufactured at the plant, through anoriginal design manufacturer (ODM) partnership with Compal,” Lu said.
The Taipei-based company said the acquisition fits in with its long-term growth strategy to focus on the “4-Screens” sectors —notebook computers, tablets, smartphones and LCD TV products.
The new factory will help it expand its LCD TV manufacturing flexibility, diversify its geographical coverage and generate revenue growth momentum in the future, the company said.
Compal generates 84 percent of its sales from its notebook and personal computer business, against only 7 percent from smart devices and 9 percent from other businesses, according to Macquarie Securities.